Thousands more beneficiaries are being challenged on property valuations in inheritance tax returns.
According to Freedom of Information figures obtained by private wealth and law firm TWM Solicitors, the number of cases referred to the Valuation Office Agency rose by 23.5% in the year to September 2025.
Property valuations have to be included in inheritance tax returns as HMRC uses them to set how much an estate should be taxed.
But the tax agency can refer cases to the Valuation Office Agency if it believes a property has been valued incorrectly.
The increased scrutiny of property valuations comes as frozen inheritance tax thresholds and rising house prices are pushing more people into paying it.
What can be done?
While there’s not much you can do about rising house prices, there are some steps you can take to ensure your beneficiaries pay less inheritance tax.
Inheritance tax is usually payable on estates worth £325,000 or more, but if you’re leaving your home to a child or grandchild, this increases by £175,000.
Couples who are married or in a civil partnership could leave up to £1m to loved ones and they won’t owe any inheritance tax.
Gifts of any size are free from inheritance tax if made seven years or more before death.
That means you could, in theory, sell your home and its value would end up outside your estate if you live long enough.
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